1. Fundo December 2013 Mark Fielding-Pritchard mefielding.com1

2. Fundo a)  The lease is an operating lease so the rentals will be expensed in the P&L on an accruals basis  The alterations are capital and will be capitalised and depreciated over their useful life  The restoration costs will be added to the cost of their asset at their present value, $5m. This will be depreciated  Dr Leasehold Improvements $12m Cr Cash $7m, restoration Provision $5m  The provision of $5m will be increased by 8% annually until expiry of the lease mefielding.com2

3. Fundo b) DebitCredit 1Lease Rentals2300Cash2300 2Lease Alterations 12000Cash7000 Provision5000 3Lease Alterations Depn Exp 1500Lease Alterations Accum Depn 1500 4Finance Cost400Provision400 mefielding.com3

4. Fundo b) Statement of Profit & Loss  Lease rental 2300  Depreciation1500  Finance cost400 Statement of Financial Position  Lease Alterations 12000  Accumulated Depn (1500)  Non Current Liability  Lease provision 5400 mefielding.com4